Exergy3 has raised £10 million to scale its proprietary modular thermal energy storage units, which convert electricity into high-temperature heat (50°C to 1,200°C). By absorbing surplus renewable generation and storing it as heat, Exergy3 says its units help address three pressing challenges: industrial decarbonisation, grid balancing and energy security.
Currently large volumes of low-carbon electricity are curtailed, while industry faces mounting pressure to secure reliable, affordable energy while reducing emissions. Industrial heat represents a significant share of global energy demand and emissions, yet remains structurally difficult to decarbonise due to its requirement for high, continuous temperatures across a wide range of processes.
Markus Rondé, CEO of Exergy3, said: “These are two sides of the same problem. Industry needs reliable, high-temperature heat, while large amounts of renewable electricity are going to waste. Exergy3 brings them together – turning surplus renewable power into reliable, low-cost heat for industry. “
The seed round was led by Axeleo Capital, joined by Bavaria-based public venture capital investor Bayern Kapital and Singapore-based Kibo Invest, with existing investors Scottish Enterprise, Zero Carbon Capital and Old College Capital, the University of Edinburgh’s in-house venture investment fund.
Guillaume Sarlat, Venture Partner, Axeleo Capital said: “Decarbonising heavy industry – accounting for over 20% of global energy consumption and still largely fossil-based – is arguably one of today’s most compelling climate hardware venture capital opportunities in Europe. Exergy3 uniquely leverages curtailed and negative-priced renewable electricity, storing it at ultra-high temperatures to deliver low-cost, zero-carbon heat to industrial customers.”